63% Believe Society Would Be Worse Off Without High Quality, Low Cost Newspaper and Magazine Content,(1) Yet Ad Blockers Threaten Future of Media
New York – September 23, 2015 – The vast majority (63%) of U.S. adults think society would be worse off without free or low-cost, high-quality editorial from newspapers, magazines and their online sites,(2) according to new research from Teads, the inventors of outstream video advertising.
Despite this, 15% of U.S. consumers have already installed ad blockers(3), with the number growing each month, threatening to cut off essential revenues that fund publishers. Ironically, those who use ad blockers are 21% more likely than those who do not to have an online subscription to a newspaper(4).
Most premium publishers now reach massive audiences online: the digital audience for newspaper content was 176MM Unique Visitors in March 2015(5). The growing use of ad blockers could significantly impact publisher revenue. Recent research showed that ad blockers will hit U.S. ad revenues by more than $20 billion in 2016(6).
The Teads study also found that consumers underestimate the contribution of advertising revenue in sustaining the business models of quality publishers. 63% of newspaper revenue is generated from advertising vs. only 29% from subscription revenue(7). 68% of those who use ad blockers underestimate publishers’ reliance on advertising revenue8.
Bertrand Quesada, CEO of Teads said: “Many of us rely on premium editorial content to keep us informed and entertained everyday, but most people don’t understand that advertising is what helps to keep content free or at a very low cost. With the increase of content consumption online, it’s no surprise to hear that 72% of users who have installed ad blockers did so to eliminate ads but advertisers must respond by creating ads that are more relevant to consumers and less intrusive to the user experience. As an industry, we need to respect the user and work to engage, rather than enrage readers.”
The Teads study asked respondents specifically about their attitudes to online video advertising, the fastest-growing4 of ad mediums, increasingly favored by brands. Over half (64%) of consumers said they’re more likely to enjoy video advertising if it’s relevant to what they’re reading and 81% prefer video ads when they’re in control and have the option to
Quesada adds, “Online video ads should be relevant to the content someone is consuming at that time and give the user control over the user experience. By addressing these issues, we can reduce consumer animosity towards ads and deliver greater viewing numbers to
Teads has launched a campaign to help people understand how advertising funds the things we love. It includes a short film inviting people to ‘imagine a world without advertising’. The campaign is calling for advertisers and publishers to employ more innovative creative and formats online: www.teads.tv/advertisingmatters.
Teads Study Methodology:
Teads conducted a general market survey leveraging Research Now’s panel with quotas placed around ad blockers, gender, and age brackets.
• Total sample consisted of n=1000 completes.
• The sample size for those who have installed ad blockers is n=400.
• All significance levels are at 95% confidence.
• Research was conducted in August 2015.
Source: Teads proprietary study via a Research Now’s Panel. “The Power of Premium.” August 2015.
Teads, founded in 2011, is the inventor of outstream video advertising and a global monetization platform for publishers. Publishers work with Teads to create brand new video inventory and manage their existing inventory, monetizing it through programmatic buying, their own sales force, or third
Teads’ outstream video advertising solutions encompasses a series of formats inserted deep into media content, like the inRead playing inside articles. It is changing the game within the video advertising market by creating unprecedented levels of premium inventory, which did not exist before.
Brands and agencies can access this top-tier, premium inventory, available on the web and on mobile, through programmatic or managed services. Through its managed services capabilities, the Teads team execute on their clients behalf using its platform.
Teads has a team of over 400 employees, 100 of which are in the innovation team, across 26 offices
in 18 countries.
1 Teads proprietary research via ResearchNow. “The Power of Premium.”
3 PageFair & Adobe. “The Cost of Ad Blocking. 2015 Ad blocking report.
4 Teads proprietary research via ResearchNow. “The Power of Premium.”
5 Newspaper Association of America via comScore. March 2015.
6 PageFair & Adobe. “The Cost of Ad Blocking. 2015 Ad Blocking Report.
7 Newspaper Association of America. 2013 Newspaper Media Revenue.
8 Teads proprietary research via ResearchNow. “The Power of Premium.”